Assalamwalaikum Mufti saab,
More than 15+ years ago my 1st cousin in the USA borrowed some money from me, $6000. At that time I converted the amount into $’s from my £ account and sent it to him.
Over the years he did not pay me, nor did i remind him, and in my mind I thought he would not pay it back so forgot about it. I said to myself I forgive him the amount, though did nor say this to him.
Just recently he called me to say he wanted to return the money he owed. I told him that he did not have to return the money, but he insisted on doing so. He paid this $6000 into a $ account I have.
The question is – at what exchange rate should I calculate the return of the money, or do I just accept the $6000 he transferred to my $ account? Because at todays exchange rate I am getting more in terms of the £ rate. Or should I refund him the excess in terms of the £ amount.
Jazakallah khairan for your guidance.
This would depend on the agreement. If the agreement was to loan $6000 then $6000 must be returned to you. It would not matter what the exchange rate is at the time. If however, the agreement was to loan a specified amount of pounds and that just happened to be $6000, then the exact same amount of pounds will need to be returned regardless of how many dollars it is now.
Ifta Research Fellow
Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel